ETP

Overview of ETP

Launched on 25 September, 2010, the Economic Transformation Programme (ETP) was formulated as part of Malaysia's National Transformation Programme. Its goal is to elevate the country to developed-nation status by 2020, targeting GNI per capita of US$15,000. This will be achieved by attracting US$444 billion in investments which will, in turn, create 3.3 million new jobs.

The ETP's targets for 2020 will be achieved through the implementation of 12 National Key Economic Areas (NKEAs), representing economic sectors which account for significant contributions to GNI. The programme is also centred on raising Malaysia's competitiveness through the implementation of six Strategic Reform Initiatives (SRIs). The SRIs comprise policies which strengthen the country's commercial environment to ensure Malaysian companies are globally competitive.

In arriving at the high-income threshold of US$15,000, the Government followed the World Bank’s threshold for a high-income economy of US$12,476 and factored in its published historical global inflation rate of 2% until 2020.

The ETP represents the catalyst for economic growth and investments needed for Malaysia to achieve high-income status by 2020. The Government's role in the ETP is that of facilitator, coordinating, tracking and monitoring the programme. While the Government will prioritise its policies and spending for the ETP, the bulk of investments, targeted at 92% by 2020, are to be financed by the private sector. The private sector, therefore, has been placed in the driver's seat in the implementation of the ETP